Learning technologies (LON:LTG) released a statement on Monday, revealing that they expect revenue for the year to exceed expectations.
The e-services and technology service provider said it expects group revenues for 2017 to be not less than £51.8 million, an improvement of £28.3 million in 2016.
The board attributed the strong performance to organic revenue growth of more than 20 percent, excluding its CSL contract in partnership with KPMG UK. Alongside this, recurring revenues rose 39 percent, compared to 27 percent in 2016.
This was largely due to strong recorded growth in the company’s software arm, coupled with a maiden contribution from NetDimensions, which it acquired back in March of 2017.
“2017 has been another exceptional year. LTG has experienced robust organic revenue growth during the year and, along with the successful acquisition and integration of NetDimensions, now enjoys a higher proportion of recurring revenues and an increasingly diversified client base both in terms of market sectors and geographical reach,” commented Andrew Brode, LTG chairman.
“LTG’s scale and expertise allows it to work closely with large blue-chip corporates and national governments as their trusted strategic partner, who are increasingly embracing e-learning solutions as evidenced by the record order book we carry into 2018,” he added.
In addition, the group’s cash position is also particularly ahead of market expectations, due to a good ‘operating cash conversion, the successful integration of NetDimensions, and the exercise of employee share options’.
According to the company, as of 31 December 2017 gross cash was £15.7 million, up from the £5.3 million tallied up at the end of 2016. Net cash totaled in at £1 million, compared with a net debt of £8.5 million a year previously.
LTG’s portfolio includes Leo – a technology learning firm, gomo learning which specialises in learning software and preloaded – a BAFTA award winning games studio.
Shares in Learning Technologies are currently trading up 13.78 percent, as of 13.21PM (GMT), following the announcement.